Crack the Case Level 2

David Ohrvall MBACASE

Todays workplan

Sizing & Structuring

90 minutes Answer First warmup Market Sizing with partners Structuring drills

Advanced Analytics
45 minutes Anticipating your data set Practice drills

Cases

75 minutes 2 mini cases Problem solving with mid-case structures

We will use this MBACASE Path as a guide to our skills.

2 1

6 7

We must build skills at each step

1. Make a great impression with all of your interactions 2. Show ownership with a structure that is broad, deep, flexible and defensible 3. Exude common sense, prioritization and a dose of enthusiasm 4. Anticipate data analysis and dive, rather than being pushed 5. Tenaciously search for insights that are connected and meaningful 6. Recommend solutions that are data oriented and actionable 7. Close with a hunger for more problems like these and company/interviewer specific questions
4

Lets start by assessing the interviewers first impression of you

2 1

6 7

1. Make a Great Impression, All the Time

Be answer first in your stories. Communicate clearly and to the point.
Try to bring the most important points to the front like a headline for an article. Were even seeing that approach more often in magazines where they summarize the main points of the article. Be ready with the 90 second and 30 second versions.

Integrate data into your fit so that you seem case ready.
Add data to your stories. Show your counting, tracking, numbers oriented self.

What do cases really test?

C
Communication

L
Logic

A
Analytical

SS
Social Skills

IC
Integration & Creativity

Warm-up with IMPACT

I ndividual Contribution M anage or Lead P ersuasion A nalytics C hallenge or Failure T eam

8

Structuring well is the most critical part of the case

2 1

6 7

2. Show ownership with a structure that is broad, deep, flexible and defensible
Show breadth Be ready with 3-5 categories you want to explore Show depth Feel free to go 1-2 layers down Be ready to add-on What else? will be the annoying question Defend but dont be defensive Interviewers want to see if you can respond well

1 0

Home Nurses wants to enter a new state. How should they think about growth?

Industry /Comp
What is the trend with other nonprofits? Is a multilocation approach best?

Growth options
Serving more patients locally? Serving more in new location? Serve different demographics? Different offerings?

Funding
Sources for day to day funds? National, State, Local Govt. Companies, Charities Individual Donations

Cost s
Fixed building, buy, build or lease Equipment for check-ins with patients, cars? People & materials bandages, medicine, training materials
1 1

SPEAK for market sizing

Market Sizing/ Estimation Cases Counting # of toothbrushes sold regularly Measuring How many square feet of windows are in Seattle Usage How fast do consumers go through a bottle of hair spray?

Communicate your comfort with numbers, ambiguity and logic

12

SPEAK is a guide

S tate your assumptions P ick your metrics E stimate quickly with round #s A ssess your approach and answer K eep exceptions and next steps in mind
13

You also need to show an understanding of priorities as you structure

2 1

6 7

14

Watch Components
Why are the component prices going up?

Block

Raw Materials

Transportation

Fewer Competitors

Break

Industry Specific shift Suppliers

Ship Land

Air

Short -term

Longterm

15

ATT Add-ons
How do we get customers to add-on more services and make us more profit?

Block

Sales

Create What If

Turn-on/off

Break

Promotions, Bundles Create Confusion

Texts

Sharing International

Roll-over Minutes

Add-on people (teens)

16

Advertising Sales
A large advertising firm wants a quick review of ways to win more pitch bake-offs with other competitors? Ideas?

Block

Creative

Speed

Flexibility

Break

Fresh Ideas

Pitch Response

Output Response

Traditional Social Media

Lots of Options

One Off Tasks

17

3. Exude common sense, prioritization and a dose of enthusiasm

Listen to the interviewer focus on the obvious at first Be confident in sharing a prioritization scheme. Interviewers want to hear how you would practically work through a situation. Ultimately, they want to know what its going to be like to work with you. You are there because you want a job show off your enjoyment. There should be some sense of excitement about solving the problem.

18

Well focus on our starts

Qualitative

Warm-up Warmth & Client Ready

Integration & Creativity Start Logic & Breadth So what? Data End

Quantitative

Depth & Analytical Chart/ Table Data Dump

Insight!

Estimate Solve for X

19

Equations

Lets practice in the Start zone, where the interviewer sees how you approach problems
Qualitative

Warm-up Warmth & Client Ready

Integration & Creativity Start Logic & Breadth So what?

Data End

Quantitative

Depth & Analytical Chart/ Table Data Dump

Insight!

Estimate Solve for X

20

Equations

Davids Top 5 Tips for Structuring

1. Use an integrated structure 2. Dont confuse housing structure with ideas 3. Show Breadth the Depth 4. When presenting, remember Think and Ask 5. Be flexible and ready to explain

21

Whats your objective with every case?

Maximize the Value of the Company

22

Develop an integrated mental map Maximum Value Model (MVM) C I

Zone 5

T
Zone 4
Finance

Zone 3
Organization

Zone 2 Zone 1
Strategy Operations

Customer

Volume People Mix Price Systems Fixed Variable

CA$H
Measure

D/E

Processes

23

Waterfall each zone adds value

Zone 4 Zone 3 Zone 2 Zone 1

24

Strategy increase, change, shrink

Zone 4 Zone 3 Zone 2 Zone 1

Strategy

25

Operations revenue and cost

Zone 4 Zone 3 Zone 2 Zone 1

Strategy Operations

Volume Mix Price

Customer

Fixed Variable

26

Organization people, systems, processes and measurement

Zone 4 Zone 3
Organization

Zone 2 Zone 1
Strategy Operations

Customer

Volume People Mix Price Systems Fixed Variable

Measure Processes

27

Finance cash, debt, equity

Zone 4 Zone 3
Organization Finance

Zone 2 Zone 1
Strategy Operations

Customer

Volume People Mix Price Systems Fixed Variable

CA$H
Measure

D/E

Processes

28

External Forces

Zone 5

Suppliers Public Economy Competitors

Technology Legal Auditing Industry

29

Maximum Value Model (MVM)

Zone 5

T
Zone 4
Finance

Zone 3
Organization

Zone 2 Zone 1
Strategy Operations

Customer

Volume People Mix Price Systems Fixed Variable

CA$H
Measure

D/E

Processes

30

House your ideas in a way that is easy to understand

Facts

Plan

Main Idea

Group A
Why? Data? Questions?

Group B

Group C

Group D

Data

31

Profit trees remove overlaps but may not be best for all cases

Facts

Plan R T T

P V VC FC

issue driver

Data C

32

Lets practice our integrated thinking

Strategy
Merge, Acquire, JV Growth Strategy New Product/ Bus New Market (Geo)

Ops & Org

Maximize Profit Change Price New Processes Restructure Team

External Forces
Competitor Attack Market Shift

Lets look for common patterns

33

First, move through your mental map

Zone 5

C
3

T
Zone 4
Finance

Zone 3
Organization

Zone 2 Zone 1
Strategy Operations

4 1 2
C R Volume People Mix Price Systems Fixed Variable .

CA$H
Measure

Customer

D/E

Processes

34

Then, lay out your plan

Facts

Plan

Main Idea

Group A
Why? Data? Questions?

Group B

Group C

Group D

Data

35

1 - Merge, Acquire, Joint Venture

United and Continental want to merge. Should they do it?

Zone 5

C
1

T
Zone 4
Finance

Zone 3
Organization

Zone 2 Zone 1
Strategy Operations

3 1 2
C R Volume People Mix Price Systems Fixed Variable .

CA$H
Measure

Customer

D/E

Processes
36

1 - Merge, Acquire, Joint Venture

United and Continental want to merge. Should they do it?

Takeaways
Always explain synergies. Are they revenue or cost? Be specific. Think practically. How quickly can the deal be done?

Facts

Plan
Acquire new airline

Strategy
What is the main goal? Share? Cost savings? Short term vs. Long term?

Ind/Comp
Do we have to do this? Will we have advant?

Rev/Cost Synergies
Revenue: more routes, more points, more flights Costs: hubs, storage, maintenance, training, HQ

Practical
Culture people and implemen. Speed Financing: cash, equity, external funding?

Data

37

2 Growth Strategy
Medical device maker just signed a new hospital chain. Help them anticipate growth.

Zone 5

C
1

T
Zone 4
Finance

Zone 3
Organization

Zone 2 Zone 1
Strategy Operations

2
R

Customer

Volume People Mix Price Systems Fixed Variable

3
Measure

CA$H D/E

Processes
38

2 Growth Strategy
Medical device maker just signed a new hospital chain. Help them anticipate growth.

Takeaways
Check for sustainability. Will demand suddenly drop off? Are there special sources for funding?

Facts

Plan
Industry /Comp
to this option?

Medical Device Co. growth expectations Growth options

Funding
How will

Cost s
What do we

Data

Alternatives Products? Channels? Marketing?

New tech,

we support new initiatives?

Type of

suppliers, legislation

need to spend to grow? Capacity?

Hidden

funding available

costs: sales , training, central team

39

3 New business or product

Dasani is launching caffeine water. Help them think through the implications.

Zone 5

P
3

C
3

I
3

L
3

T
Zone 4
Finance

Zone 3
Organization

Zone 2 Zone 1
Strategy Operations

1
R

2
Customer

4
Volume People Mix Price Systems Fixed Variable .

5
CA$H D/E

Measure Processes

40

3 New business or product

Dasani is launching caffeine water. Help them think through the implications.

Takeaways
With new products, consider cannibalization. What are you assuming to be true with the launch?

Facts

Plan
Caffeine water impact

Strategy
New

Revenue growth
What is Year 1

Broad overview
issues?

Org & Fin

Data

direction for products?

Add to

demand? revenue?
Cannibalize

Any supply What do we

other products? New portfolio?

other prods?

need to do to support Comp. are new prod. & we ahead? sales? Industry How many barriers? years to Patents? invest? Regulations?

41

4 Enter new geography or market

AMC theaters wants to open in Asia. a new country? Should they enter

Zone 5

P
3

C
3

I
3

L
3

T
Zone 4
Finance

Zone 3
Organization

Zone 2 Zone 1
Strategy Operations

1
R

2
Customer

4
Volume People Mix Price Systems Fixed Variable .

5
CA$H D/E

Measure Processes

42

4 Enter new geography or market

AMC theaters wants to open in Asia. enter a new country? Should they

Plan
Enter Asia? Challenges?

Takeaways
What is the same and what is different? Use a broad bucket to group several small ideas.

Strategy
Why Asia? Same

Revenue growth
Can we

Broad overview
Digital

Org & Fin

Do we have

Data

products as before?
Strength in

network? Brand?

build interest rights isssues? in our Comp. products? whos dominant? Can we Industry charge more barriers to per seat? foreign Snacks? company?

partners in place?
Will we

build new theaters?

How much

to fund?

43

5 Restructure the team

Insurance Co. wants to evaluate workload and reallocate team members. How would you do it?

Zone 5

T
Zone 4
Finance

Zone 3
Organization

Zone 2 Zone 1
Strategy Operations

3 2

Customer

Volume People Mix Price Systems Fixed Variable

1 4

CA$H D/E

Measure Processes

44

5 Restructure the team

Insurance Co. reallocating teams

Takeaways
Break down the process (just like process improvement). Align people to the steps.

Facts

Plan

Enrique How do we realign the team? Rev/ Impact

allocate resources in a profit maximizing way?

People / Size
Who will

Costs
Costs

Process Steps
each process step
How can

Data

Stay analytical.

support this process?

What is

associated with each function in the process?

How will

How do we Map out

the flow overall?

they change under each option?

each step be optimized?

45

6 Competitor Attack
A chain of high-end wedding dress stores are facing a new threat. Mass market wedding dresses are stealing share. How would you help them?
Zone 5

C
1

T
Zone 4
Finance

Zone 3
Organization

Zone 2 Zone 1
Strategy Operations

Customer

Volume People Mix Price Systems Fixed Variable

CA$H
Measure

D/E

Processes

4
46

6 Competitor Attack
High-end, wedding dress maker, new product competition

Takeaways
Whats the companys super power? Consider strengths first before going into new areas.

Facts

Plan
How respond to competition?

Compet.
How

Rev / Costs
Overall

Strategy
What kind

Action Steps
What has to

Data

competing? Price, new innovation , better dist.? what appeal to customers?

impact? Which product lines? Have our costs been hurt at all?

of large actions can we take? Drop prods? Introduce innovation? Play fear?

change? Process steps? Team alignment?

47

7 Market Shift (industry, tech, supply)

Major packaged food maker of cookies, crackers and other starchy snacks is getting hurt by the low carb craze. What should they do?
Zone 5

C
1

T
Zone 4
Finance

Zone 3
Organization

Zone 2 Zone 1
Strategy Operations

2
C

Customer

Volume People Mix Price Systems Fixed Variable

3
Measure

CA$H D/E

Processes
48

7 Market Shift (industry, tech, supply)

Packaged food maker, drop off in product sales

Takeaways
Consider time to market and pay back. Dont try to stay in the same space if the shift is strong.

Facts

Plan

Carbo Foods Change in consumption Rev / Costs

To what

External Forces
How is the

Organ

Strategy

Data

shift taking place? What is the specific impact? Implications for other prods?

degree is the drop off/ How will this continue? Can sales be brought back?

How do we What high

realign our people, systems and technology?

protein prods can we launch now to slow the decline?

49

Todays workplan

Sizing & Structuring

90 minutes Answer First warmup Market Sizing with partners Structuring drills

Advanced Analytics
45 minutes Anticipating your data set Practice drills

Cases

75 minutes 2 mini cases Problem solving with mid-case structures

50

We are focusing on the data pool. Dive in, dont wait to be pushed.
Qualitative

Warm-up Warmth & Client Ready

Start

Integration & Creativity

So what?

Logic & Breadth

7 5
Insight!

Data End

Quantitative

Depth & Analytical Data Dump

Our Focus

Chart/ Table

Estimate Solve for X

51

Equations

4. Anticipate and dive into the data , rather than being pushed Build the habit of anticipating the data you need and how youll likely be tested For instance, if you hear: Profit >>> pricing data, cost data over time, and volume shift Acquisition >>> sale price, multiples of revenue, expected return on investment New Product >>> anticipated market demand (volume), expected price points, realistic volume well achieve

5 2

Diving into Data Rules of Thumb

1. Think ahead anticipate as soon as you hear the initial question. 2. Talk your way in - develop transitional phrases for diving into the data pool. 3. No splashing - maintain order when swimming around. 4. Talk through the data stay connected to your interviewer. 5. Estimate first try to get out of the pool with a rough insight. Wait to got to the detailed level.

53

Anticipate! What kind of data would you likely need for each type of case?
Strategy
Merge, Acquire, JV
Targets revenue, cost base

Ops & Org

Maximize Profit
Profit variables: P, V, FC, VC

External Forces
Competitor Attack
Competitor share Sales by product

Growth Strategy
Projected sales multi year New investments Targets: ROI, sales

Change Price
Pricing over time Units sold w/ new price Pricing range or options

Market Shift
Sales gap due to shift Timing to replace Projected prices and units

New Product/ Bus

New Processes

Projected sales by category Process steps Projected prices People and time per step Cyclicality Dollars invested/ profit per step

New Market (Geo)

Restructure Team

Projected sales by location Process steps and team actions Projected prices Financial and efficiency goals Data supporting typical activities
54

Show that you are eager to dive in by using phrases that get you data
If its OK with you lets look at revenue. Do you have sales over the last 12 months? Lets explore the cost side of the equation. Id like to look at some specific costs like labor for each plant if you have it? Since they want to do an acquisition, do you have prices for recent transactions price paid or annual revenue times the multiple? You mentioned that they want to focus on fixed costs. Do you have the total amount and which facilities are sharing the costs?

55

Maintain order by using techniques to capture data quickly and accurately. Block & Break
Develop the skill to break each discussion into clean categories Break each block into an A & B. Move through in order

Data Tables
Practice creating the table without recoding Anticipate ahead of time your columns and rows Answers jump off the page when youre neat

Charts, 2x2s
Use bar charts over pies easier to see value Avoid over complicating and getting lost Practice old cases multiple times to build speed

Equations
Usually driven by the interviewer Look for novel ways to weave in variables Focus on the basics like break-even
56

Lets practice some data drills

Can you anticipate the data set?

57

Slides

Slash & Burn

5 8

Data Dump

Fitness Xtreme

5 9

Data Dump

Green Thumb

60

Slides

Clark & Gable

6 1

Quick Review
1. Make a great impression with all of your interactions 2. Show ownership with a structure that is broad, deep, flexible and defensible 3. Exude common sense, prioritization and a dose of enthusiasm 4. Anticipate data analysis and dive, rather than being pushed 5. Tenaciously search for insights that are connected and meaningful 6. Recommend solutions that are data oriented and actionable 7. Close with a hunger for more problems like these and company/interviewer specific questions
62

We are now focused on finding deeper insights.

2 1

6 7

63

Keys to Finding 2nd Level Insights

1. Use your notes effectively 2. Master the basics of Block and Break 3. Anticipate with tables and charts 4. Build a go-to tool kit for breaking down ideas 5. Practice and present using material you already know (old cases)

64

Do you have a note taking strategy?

Page 1 Data Plan Pages 2-3 Mid-case Structures

Facts

Data Questions

Page 4 summary points x x x x

Usually dont need

65

Mid-case structures are necessary to do well consistently

Which ones do you naturally do today?

66

Do you have a note taking strategy?

Pages 2-3 Mid-case Structures

Info Flow

Process Flow

Observation: See, Hear, Smell, Taste, Touch

Stakeholder View

67

Kitchen Blaze

Now that weve looked at the acquisition targets, lets talk about another challenge Kung Pow is facing. They need to speed up their kitchen activities. How should they do that?

Observation: 1) See, Hear, Smell, Taste, Touch

Activities: Cutting, grilling, baking, cleaning, prep and plating

Process Flow 2)

Grilling: Prep>grill>season>plate

68

Dispense Sense

One of improvement the hospital is considering is rolling out new Dispense Sense automated pharmacy control machines. How would you evaluate this idea?

1)

Stakeholder View

Think through each opinion: Doctor, nurse, financial team, management, pharma supplier, hospital pharmacy, patient

Process Flow 2)

Typical Flow:

Doctor>declares need >Nurse>Pharmacy> Nurse>Patient

69

Info Flow Priorities

For each of the following information flashes, think through which parties in the organization would care the most.
our inventory is low retail stores marketing / sales new performance reviews employees / managers HR external head hunters legal dept.

purchasing

senior management

new competitor product is very good management marketing

sales

R&D
70

2 x 2s can have a variety of dimensions

Pages 2-3 Mid-case Structures

Opposites

New / Old Top / Bottom Low / High (also a continuum) Internal / External

Continuums

Financial (dollar amt.) Time (months, years) Difficulty (simple to very hard) Skill (beginner to advanced)

71

2x2 these situations

Develop a 2x2 for each scenario. How would you label each dimension?
which country to enter
Financial (dollar amt.) Difficulty to enter

how increase sales

CUSTOMERS New Exist

Exist PRODUCTS New

72

2x2 these situations

Develop a 2x2 for each scenario. How would you label each dimension?
which company to acquire
Expected Return (range)

Price Point (range)

give loans to micro organizations

SUCCESS POTENTIAL Low High

High SPEED OF SUCCESS Low

73

2nd Level Insights Wrap-up

Get organized with your notes Dont just brainstorm with your interviewer hit the table with a small structure Master Block and Break Practice making instant tables and charts Develop a tool kit of mid-case structures and use them often Practice on random topics all the time Redo old cases to lock in mental memory

74

Our Approach
1. Make a great impression with all of your interactions 2. Show ownership with a structure that is broad, deep, flexible and defensible 3. Exude common sense, prioritization and a dose of enthusiasm 4. Anticipate data analysis and dive, rather than being pushed 5. Tenaciously search for insights that are connected and meaningful 6. Recommend solutions that are data oriented and actionable 7. Close with a hunger for more problems like these and company/interviewer specific questions
75

We are now focused on using our insights to finish strong

2 1

6 7

4 5

76

Quick Review
1. Structure well in the beginning 2. Anticipate where you are taking the story 3. Mark the key points as you go 4. Lead your conclusion with logic 1, 2 and 3 5. Assess what youve covered in your initial structure and whats left 6. Integrate all of the key pieces look for your marks 7. Data, data, data use any number you can to support your final recommendation

77

1) Structuring well in the beginning helps you finish strong

Page 1 Data Plan Refer back to it To wrap up, let me go back to the 2 key points we discussed. Competitors are taking share due to rapid innovation and our R&D results have been diminishing. As a result . . . .

Facts

Data Questions

78

2) How do you think this story will turn out? Anticipate the ending (1 of 3)

Strategy Zone
Merge, Acquire, JV Growth Strategy New Product/ Bus New Market (Geo) Exit a Business
Go/ No Go on deal Price to pay / terms

Investments to make ROI goals and overall timing

Projected price, volume, sales Next steps

Projected sales over time Projected market share

Exit/ Dont exit Total hidden costs due to deal Detailed next steps

79

2) How do you think this story will turn out? Anticipate the ending (2 of 3).

Ops/Org Zone
Maximize profit Change Price New Processes Restructure Team
Actions to address variable (P, V, FC, VC)

Pricing strategy How to measure price changes

New process steps Projected results (savings or revenue increase) New team allocations Projected impact

80

2) How do you think this story will turn out? Anticipate the ending (3 of 3).

External Forces
Competitor Attack Market Shift
Defense or offense strategy Projected sales and impact

Solution to the shift Projected sales with new products

81

3) Mark key points as you go

Page 1 Profit down 30% ($25M) Lunch Your Way Page 2

2 yr. volume decline 100+ menu choices

Spend on equp.

Frequent menu changes

Page 3
Non-stand product High profit margin Low profit margin Stand. product

Marking as you go gives you the ability to quickly wrap up

82

4) Lead your conclusion with logic. First, second and third are always good.
You want to think about ending the case with some kind of logical structure that is easy to follow:

1, 2, 3

Short term Long term

Domestic strategy vs. international

Homework) What approaches work well for you? Develop several that can help you close the case.

Fill in

Fill in

Fill in

83

4) Also, show off your answer first style at the end of the case
Work on phrases that sound natural to you and help drive to a conclusion:

Well, Im ready to wrap up. There are 3 key points they should consider. I think I have all the data to solve this and give my final conclusion. Do you mind if I give my recommendation? There are some clear actions they can take given the data, so lets go through them now. We covered a lot of topics, but I do think there are some clear priorities. The top two are . . . .

84

5) Assess what youve covered in your initial structure and whats left
Page 1 Profit down 30% ($25M) Lunch Your Way Page 3 Page 2 product
Non-stand Stand. product

2 yr. volume decline 100+ menu choices

Spend on equp.

High profit margin Low profit margin

Frequent menu changes

Mention in your wrap-up where you focused your analysis and where you did not have time or data. You can explain what you would do in next steps.

So to close our analysis, I recommend that Lunch Your Way cut their menu choices by 30% and reduce overall complexity. This complexity is causing 2 main issues: customer confusion and resulting drop in revenue, and the need to buy new equipment. We didnt have time to discuss employee and kitchen processes, but I would want to look there next for additional savings due to simplification.

85

6) Integrate all of the key pieces look for your marks

Page 1 Profit down 30% ($25M) Lunch Your Way Page 2

2 yr. volume decline 100+ menu choices

Spend on equp.

Frequent menu changes

Page 3
Non-stand product High profit margin Low profit margin Stand. product

Plan to mention why each of the areas was important and how it ties to your conclusion

86

7) Data, data, data use any number you can to support your final recommendation
Example A) Toy Transfer Pricing The Great Ending has more data and a strong conviction about where to go next.
OK Ending
Kryptonite needs to focus on profitable deals for the company as a whole. To do this, theyll need to put an end to the outdated Net 15% policy. Instead, each deal should be evaluated on its value to the entire company. I suggest that we look into automating the approval system in SAP and have an exception-based review process. Internally, well need to ensure that each region gets a fair portion of the profits from the deal. Well need to clearly explain the benefits of this approach to each region head, as they have not been open to corporate initiatives in the past.

Great Ending
Kryptonite is turning down a large number of profitable deals every year. In fact, in 2001 the total average net profit from all rejected deals amounts to about 10% of total net profit. To capture some of this money in the bottom line, we need to think differently about our structure. Decentralizing the decision-making for global price quotes and sticking to the Net 15 rule for every deal doesnt make sense anymore. I recommend we automate an approval system and have close call deals reviewed by senior management. KTP should put a team in place to monitor the rollout of this new process.

87

7) Data, data, data use any number you can to support your final recommendation
Example B) Lawn Chemical Company The Great Ending has clear points about what to do next and two data examples.
OK Ending
It is pretty clear from the data that these environmental risks are big and growing. Continued pressure from the communities to reduce water, coupled with increasing sensitivity to using chemicals, leaves us somewhat vulnerable. At this point the lawn reduction trend seems small. Since almost 1/3 of our revenue is in states where these issues are important, we should consider protecting our overall revenue by pursuing new products.

Great Ending
In sum, these issues are serious: 1/3 of our revenue comes from high awareness states, legislation to limit watering is increasing and about 1/3 of polled customers want to limit chemical usage. We are also seeing revenue drops in key states like California, which may be attributed to these environmental concerns. I recommend we focus on two areas: 1. Build relationships with acquisition targets and find a way to partner with them; 2. Market our push toward green solutions and our concern for the environment. As for next steps, I would pursue further analysis of the drivers of revenue decline in our key states.

88

7) Data, data, data use any number you can to support your final recommendation
Example C) NY Investors Need $500M The data in the Great Ending is very clear and ties well with the recommendation.
OK Ending
It seems like we have to get out of Heavy Lawn Equipment because of its low numbers on both growth and margin. It would be good to eventually get out of this category altogether, but our holdings are too large. So, in the meantime Id remove everything but True Cut. We could also throw in Congren to boost the total divestiture to $556M. I think well still have a good presence in the stores.

Great Ending
To reach our goal of divesting $500M of assets, I decided to focus on the low growth/ low margin targets first. In particular, I focused on the assets within the Heavy Lawn Equipment category because of its poor performance on both of these dimensions. I recommend that we pare the division down to True Cut only and quickly build its innovation to maintain market dominance. Divesting of Lawn Kraft, Shaker Smith and Trim Assist does not total $500M, so Id also sell Congren, a fading company. Together, these total $556M. Our remaining holdings still give us a strong presence in home improvement.

89

How to Finish Strong Wrap-up

1. Structure well in the beginning 2. Anticipate where you are taking the story 3. Mark the key points as you go 4. Lead your conclusion with logic 1, 2 and 3 5. Assess what youve covered in your initial structure and whats left 6. Integrate all of the key pieces look for your marks 7. Data, data, data use any number you can to support your final recommendation

90

Build key skills at each step of the MBACASE path

2 1

6 7

4 5

91

1. Make a Great Impression, All the Time

Be answer first in your stories. Communicate clearly and to the point. Try to bring the most important points to the front like a headline for an article. Were even seeing that approach more often in magazines where they summarize the main points of the article. Be ready with the 90 second and 30 second versions. Integrate data into your fit so that you seem case ready. Add data to your stories. Show your counting, tracking, numbers oriented self.

92

2. When structuring, first move through your mental map C

3

Zone 5

T
Zone 4
Finance

Zone 3
Organization

Zone 2 Zone 1
Strategy Operations

4 1 2
C R Volume People Mix Price Systems Fixed Variable .

CA$H
Measure

Customer

D/E

Processes

93

3. Then, lay out your plan showing breadth and depth with case specific terms

Facts

Plan

Main Idea

Group A
Why? Data? Questions?

Group B

Group C

Group D

Data

Dont forget to THINK and ASK as you go through your plan and show ownership

94

4. As you move into the data pool be sure to anticipate what youll need
Strategy
Merge, Acquire, JV
Targets revenue, cost base

Ops & Org

Maximize Profit
Profit variables: P, V, FC, VC

External Forces
Competitor Attack
Competitor share Sales by product

Growth Strategy
Projected sales multi year New investments Targets: ROI, sales

Change Price
Pricing over time Units sold w/ new price Pricing range or options

Market Shift
Sales gap due to shift Timing to replace Projected prices and units

New Product/ Bus

New Processes

Projected sales by category Process steps Projected prices People and time per step Cyclicality Dollars invested/ profit per step

New Market (Geo)

Restructure Team

Projected sales by location Process steps and team actions Projected prices Financial and efficiency goals Data supporting typical activities
95

5) Practice going to 2nd level insights with mid-case structures

Info Flow
Pages 2-3 Mid-case Structures

Process Flow

Observation: See, Hear, Smell, Taste, Touch

Stakeholder View

96

6) Plan your ending in advance and integrate all the key points
Page 1 Profit down 30% ($25M) Lunch Your Way Page 2

2 yr. volume decline 100+ menu choices

Spend on equp.

Frequent menu changes

Page 3
Non-stand product High profit margin Low profit margin Stand. product

97

7) Finish strong with data, specifics, next steps and a dash of creativity

OK Ending Weak data Poor integration No firm recommendation Little support No next steps

Great Ending Specific facts Ties all the key points Clear and well supported recommendation Backed up with data Concrete actions

98

Todays work plan

Sizing & Structuring

120 minutes Answer First warmup Market Sizing with partners Structuring drills

Advanced Analytics
75 minutes Anticipating your data set Building mid-case structures 2 sets of slides Practice drills

Advanced Cases
180 minutes 4 challenging cases that emphasize different skills: Market sizing Quick calculations Presenting options Integration

99

Crack the Case Level 2

David Ohrvall MBACASE